CBN Commences Implementation of ‘guide to bank charges’

The Central Bank of Nigerian (CBN) has started a phased execution of ‘Guide to Bank Charges’.

Generally, the guideline is meant to protect bank customers’ interest in their dealing with lenders.

CBN’s move through the Bankers’ Committee to remove N100 transaction fee on other banks’ Automated Teller Machines (ATMs) was a test for the test for the guideline, which is at its final stage of approval.

A source within CBN said the guideline was meant to address complaints arising from bank tariffs and other miscellaneous fees charged by banks on their customers’ accounts.

According to the source, CBN was working on harmonising all areas to bring the review to completion, added that the review was at ‘advanced stage’.

He also said the essence of the review exercise was to reduce the cost of banking and financial services on customers.

In a statement, the CBN said, “such complaints arising from high bank tariffs could threaten confidence in the banking system. In reviewing and updating the document on the charges, the CBN will be guided by, among other factors, financial inclusion, with emphasis on consumer protection, unit cost of banks, and contemporary developments in Nigeria’s banking industry.”

In addition, CBN said, the guideline, which was issued to the industry some years ago, is being re-evaluated to guard bank customers’ interest.

It condemned the practices in some banks, saying some banks exploit customers with exorbitant products and services, which has discouraged many people from assessing financial services.

It said commercial and other banks should to be major partners in its drive for financial inclusion, even if for reasons of enlightened self-interest, which means imbibing a different approach to charges on customers.